Actions During Recession or Crisis
The current time in business is unprecedented, and its impact on the economy across all sectors is enormous. If, as a company, we want to navigate through this period well, manage the immediate uncertainty, and achieve good results in the short and medium term, we must develop the right plan to guide the company through these challenges. This involves creating a so-called DEVELOPMENT PLAN.
At the moment, it is difficult to predict what the return to a “new normal” will look like. Therefore, for companies and enterprises that want to grow and succeed, it is essential to go through the following six steps:
- Understand what the current recession means for the industry and company
- Understand the changing needs of customers during the crisis
- Think and act with both solutions for current problems and plans for future opportunities in mind
- Make wise decisions regarding optimization
- Adjust the offer, pricing elements, and market communication
- Use the power of Leadership to ensure all Employees understand what we are doing and where we are headed
During the current crisis, this means taking actions with increased intensity but in a specific way, i.e., despite changes often accompanied by cost reductions and accelerated activities, maintaining growth potential! It’s about building the right potential!.
Today, we propose starting the process with a DIAGNOSIS and DEVELOPMENT WORKSHOP involving the company’s key managers. The workshop’s goal is to bring the team together around the company’s goals in the current situation, jointly examine what is happening in the market, align ways of thinking and motivation. Look at the company and the market in the short and slightly longer term to develop a “DEVELOPMENT PLAN” for challenging times.
The work involves three steps: DIAGNOSIS, POTENTIAL, ACTION to achieve a shared MINDSET and TEAM INTEGRATION around the tasks ahead and to align ways of thinking about our goals, plans, and the path to achieving them!
ACTION METHODOLOGY:
DIAGNOSIS – What is the current state? How are we operating now, and what results is it bringing?
- Analysis and diagnosis of the current state of the company
- Identification of key problems and limitations
- Analysis of financial and legal status
POTENTIAL – What does the current situation mean for our business? What is the market environment like? The industry’s situation? Competitors’ actions?
- Analysis of the market environment, industry, and competition
- Determination of what the current situation means for our company. What are the threats? Does it present any opportunities?
- Development and outline of areas for work
ACTION – How will we do it? Implementation of the action plan with the appropriate perspective.
- Designing actions, initiatives, and efficiency elements for implementation
- Development of Action Plan (up to 6 months) and Development Plan “DEVELOPMENT PLAN” (1 to 3 years)
- Preparation for implementation and acting in this direction
- Consistent implementation and monitoring
- Verification and adjustment
- Preparing the company for change management
The entire process is based on analyzing and diagnosing the company’s current state, identifying needs, business goals, and developing the right steps for action, which, depending on the company’s situation, are categorized into three perspectives:
- Crisis Management – if needed – usually involves managing immediate problems and guiding the company through challenges, typically lasting 1 to 6 months
- Action Plan – during a recession, this perspective lasts from 6 to 18 months
- Development Plan – DEVELOPMENT PLAN – a perspective of 1 to 3 years
- Company Strategy – a perspective of up to 5 years, sometimes longer
Recession, crisis, economic slowdown, and stagnation necessitate appropriate actions in every company. It’s not immediately clear what needs to be done. Some companies overreact, while others act too late. In such situations, the ability to find the right approach to move forward is crucial, i.e., selecting elements that stabilize the company NOW and support its growth in the FUTURE. Usually, these are well-planned adaptive changes, which, when delayed, require broader optimization. If done too shallowly, they trigger a need for deeper reorganization, which… leads to a slippery slope we would never want to experience! That’s why it’s crucial to start correctly!